[08rookie]

ive posted before about credit cards and i apologize about the repetition...however i have another angled question about the same topic...

visa/mastercard are basically processing machines backed by individual banks...chase, capital one, bank of america or any number of banks actually issue the card correct?

i have a Best Buy retail card issued through HSBC bank...my credit limit is like 3k, i have maybe a running balance of 800 bucks now....i was interested in getting a visa card just so i can begin history with visa for future purposes....instead of browsing through other lending institutions offers (eventhough i get a new pre approved letter ever f'n day at home) i was thinking of sticking with HSBC because i already have a history with them...

is it safe to say that if HSBC bank issues a retail outlet's credit card (Best Buy) and has actually increased my credit limit recently, then my chances of being approved for a basic visa card thought that bank would be better or worse then if i were to apply for a basic card through capital one, bank of america, chase?!

i have credit history with bmw financial (1 year no late payments), us dept of education (4 years no late payments), and best buy(3 years no late payments)...i want to buy a property in the future and im concerned about mortgage companies wanting to see history with a major credit card company like visa or mastercard....thats why i want the visa...im well versed in the other factors like debt to income ratios...im aggressively paying down my principals with bmw and student loans...

[El Cheapo Loco]

Easiest way to get a secured credit card. You open a savings account at a bank and deposit like $1000. Then ask them to issue you a secured credit card with a limit of exactly $1000. You will not be able to use that $1000 because the bank is keeping it as collateral. You then use the credit card to build your credit. After 6-12 months other credit card offers will come.

This is the method to build credit whether you have none, or your credit is screwed after a bankruptcy/foreclosure.

[escobar929]

that best buy CC is the worst one you can possibly have. any store card is considered a 3rd tier card and looks the worse when you go apply for a loan, since those are always the ones that get maxed out first

[08rookie]

@elcheapoloco....i dont think i necessarily have to build credit...i already have credit...my credit score is relatively ok...my debt to income ratio could be better...im working on paying down my principal so i can reduce my ratios...i could always give myself a raise (im self employed) but from a mortgage standpoint i need 2 years of pay at a certain rate anyway....

@escobar929...maybe some people max out their best buy cards first but in my situation i was approved, never missed a payment, never maxed out the credit limit, was given a credit raise.....and i had this best buy card a while before i walked into bmw and was approved for a new car without a co-signer at 2.9....i know mortgages are different then auto loans but bmw financial didnt give me shit just asked me to sign and pick out a car lol....

ive never had a credit card, never, but as i get older i would like the advantage of having a credit card....ive always been a cash guy. i have a secure job, reliable income, passive personality (i live within my means) but i like the idea of paying for something substantial over the course of time rather then deplete my savings in one swipe of my debit card

[08rookie]

Originally Posted by elcheapoloco

After 6-12 months other credit card offers will come.

i get credit card offers every f'n day in my mailbox....'you have been pre approved for the bank of american visa with introductory rate of 0% for the first 6 months bla bla bla....'

i figure that i have got to meet certain criteria to get the pre selected offers....even if i only get a 300 dollar limit...i can transform that 300 dollar limit to 3000 in a short period of time...

[escobar929]

Originally Posted by 08rookie

@escobar929...maybe some people max out their best buy cards first but in my situation i was approved, never missed a payment, never maxed out the credit limit, was given a credit raise.....and i had this best buy card a while before i walked into bmw and was approved for a new car without a co-signer at 2.9....i know mortgages are different then auto loans but bmw financial didnt give me shit just asked me to sign and pick out a car lol....

you dont have to max it out before it looks bad in the loaners point of view, just having 3rd tier cards lowers your credit score

of course bmw financial isnt gonna turn you down because of it, they wanna sell you the car and since you credit must be pretty decent, you got a good apr

if i were you, i would ditch it a year or two before you go apply for a house loan

also make sure you never reach higher than 20-40% of the CC limit as this will also lower your credit score

[fnckr]

What??? Just rumors and myths here. OP, your credit is fine and you're building a solid foundation. You are right to apply for a regular credit card. One of the most important factors of your score is debt utilization of revolving accounts (accounts that can be paid down and then re-used like a credit card) versus term loans like your car loan and student debt. $800 out of $2000 is not the best if it's been a steady balance, but I don't see a reason for you not to be approved for another credit card. Stop buying PS3 games! To be definite,you should have the balance lower for at least 1 quarter to be sure it reflects on all three bureaus. Take your next paycheck and pay it down.

Your best bet for approval would be to apply with your current bank, unless you have a history of overdrafts and other issues with them..., but it doesn't sound like you'd have a problem getting a card from anyone anyway. Just the line amount may be lower initially.

As for the type of card, consider what you want to use the card for; rewards or credit. Select appropriately. Once you're approved, use it. However, only buy things you know you can pay off quickly, or better yet at the end of the month. Right now, I actually put everything on credit card, even $2 coffee, my phone bill, anything, just so I can collect the points. I'm paying them anyway, so why not. At the end of the month I just take the money that I would've spent, and is instead sitting there, out of my checking account and pay the bill. This shows the credit card companies that you are not only a good risk (because you pay your obligations) but that you are profitable (because you use your card). Both will boost your score.

I know millionaires that were denied business loans because they had no credit history since they never used their one and only credit card. A credit score is not only a measure of risk, it's a measure of a good customer. Unfortunately it influences so many things that you have to play the credit game...

[08rookie]

Originally Posted by escobar929

also make sure you never reach higher than 20-40% of the CC limit as this will also lower your credit score

im kinda high with my installment ratios....i have like 34k in credit limit through my installment accounts (bmw financial and depertment of education) and my balance is maybe 25k after may payments have been applied...im aggressively trying to pay down the principal tho for these 2 accounts

but im low with my revolving ratios (best buy) my available credit is 2600 and my balance is 800...soon to be an even 600 and might even pay it off completely next wk...

are you saying paying off my best buy and applying for a universal charge card is not a good option? having a universal charge card of any capacity, even with a 300 dollar limit (visa, disc, mc) on my history will look better then a 3rd tier card correct? are installment accounts more scrutinized then revolving accounts?!

[08rookie]

Originally Posted by fnckr

As for the type of card, consider what you want to use the card for; rewards or credit. Select appropriately. .

rewards like points?! i was under the impression all cc offer some sort of rewards with them...maybe im ignorant...id like the idea of starting with a small credit line (less then 1k) and building that to significant amount over the course of a several months/year

with my family business i am an additional card member for our amex business gold card...im also an authorized user of the rewards...last month i took my gf to southbeach and used points...perfect! 60k in points but i thought it was worth it...our business uses amex for everything and the points build rather quickly

[fnckr]

Originally Posted by 08rookie

rewards like points?! i was under the impression all cc offer some sort of rewards with them...maybe im ignorant...id like the idea of starting with a small credit line (less then 1k) and building that to significant amount over the course of a several months/year

with my family business i am an additional card member for our amex business gold card...im also an authorized user of the rewards...last month i took my gf to southbeach and used points...perfect! 60k in points but i thought it was worth it...our business uses amex for everything and the points build rather quickly

Exactly!!! And be sure to check the credit cards website for ways to earn bonuses like paying for gas or groceries, or clicking through their website to get to your online retailer of choice, like target.com, etc. I get 3 points/dollar by following the link on my CCs website to target.com than if I went directly to target.com.

Some cards do not offer rewards at all and are just for people with low credit scores, or those wanting low rates because they maintain a balance. Some offer both.

I literally visited all the different card issuers and read the terms and conditions to determine which card was best for my lifestyle. Just google "credit card" and there will be plenty of websites that have a lot of that information in one place.

Business cards don't affect personal credit score positively. They will however hurt your score negatively if you don't pay and they are forced to report to the bureaus.

Just apply. Then use it. Then pay it off. Save up cash (not all, just some) for your big purchases, buy on CC, then pay off. You can get in trouble with credit. Just be sure you know where the money is coming from for the purchase you're about to make. The money doesn't have to come now, just know that it's definitely coming and when.

[fnckr]

Oh, and I bet you get at least a $3000 line with your first application.

[mpimping]

Dude i would s tay away from hsbc. they r a poorly run bank and really fuck the consumer

[Maestro]

here is another factor that goes in to credit rating. Besides looking at your pass and your ability to pay your bills on time, they look at you total ability to get yourself into debt verse what you make. If you have too much debt plus lots of credit this can lower your score since they look at this as risk and your ability to get in over your head.

Having store cards usually is far worse then having one VISA/Mastercard with a high limit on it.

Also, it does not matter who issue the card to you since all transaction are cleared nu Visa or Master card any why and they are the ones who report you financial health to the credit bureaus

Go out and find the best card with the best features, just keep in mind the laws have changed around credit card these days and are a bit hard to one with high limits

[mpimping]

Just find the best credit card and stretch your income a bit and pay it on time or get mommy to cosign it if she has good credit. store cards ftl

[08rookie]

Originally Posted by mpimping

Just find the best credit card and stretch your income a bit and pay it on time or get mommy to cosign it if she has good credit. store cards ftl

i would lose respect for myself if i needed a co signer...id be more likely to co sign for my mom lol

[mpimping]

K hope u know i wasnt making fun of you. you want the highest limit lowest interest rate and dont overspend. if you carry a revolving balance of 50% of your limit it will hurt your score. whats your fico monthly income and how long have you had credit? how long have you been employed?

[08rookie]

Originally Posted by mpimping

K hope u know i wasnt making fun of you. you want the highest limit lowest interest rate and dont overspend. if you carry a revolving balance of 50% of your limit it will hurt your score. whats your fico monthly income and how long have you had credit? how long have you been employed?

i kno...i wasnt offended by your statement...my fico is between a high 6...maybe 660 to 690?! thats what the credit guy projected yesterday...when i got my free credit report a couple wks ago i saw an inquiry from a company a while back (like in july of 09) used when i was looking into getting approved for a mortgage...i was approved but i didnt like how much i was approved for...i contacted the company because i wanted the inquiry removed from my report, nice guy got back to me and was very informative....i asked if he could remove the inquiry on my report so i can increase my score...he told me my score on file has been most likely been increased since they pulled in a couple months ago...he projected in the high 6's even maybe an even 700...if his projections are off im looking at a 640 or 650ish?!! if they are right im hoping to be around 700....i would gladly pay the ten bucks to get my up to date fico but im not sure what site to trust lol...

now i carry a balance of 900 on a 2600 revolving account....whats that %?? less the 37%?! i was never good at math haha

im self employed, very secure death care business...business is always good...but its all cash...hard getting approved for big ticket items when you look like a bus boy on paper haha...but i did get my beema! even with the beema im still living within my means....im not in the market for a mortgage....just in the market for a universal credit card....trying to build my credit score and my lending limit...